Day: August 21, 2018

Some Real Estate Sell and Buy Tips in HOA and Condo Communities

Aquarina is unique in that it has both and multiple HOA and Condo neighborhoods.  There is the Aquarina PUD, which has an HOA, i.e. the ACSA, the HOA for the whole Aquarina community. In addition, each neighborhood is then overseen by either another HOA or a Condo Association.  For example, Egret Trace has a Condo Association and Les Villas has an HOA.

Buying into this situation comes with several caveats, i.e. being familiar with Condo Associations and the HOA’s CC&R’s, i.e. Covenants, Conditions, and Restrictions.  Florida Statutes require a Condo and/or an HOA Disclosure Form be included with any Purchase Contract.  It is up to the Buyer to perform the due diligence of reviewing the documents for the neighborhood.  What is especially important are the House Rules, the Budgets (current and proposed), the last three Board Meeting Minutes, and the Annual Meeting Minutes for the particular neighborhood  where a purchase would be made.  You do not want to find out after you close on the Property that there may be a possible and huge assessment coming down the road or that you cannot leave your boat or RV in the driveway.

For those that may be selling, there are some other caveats to consider.  When that acceptable contract to purchase your property is put before you, make sure that if it is a cash purchase that you have a contingency that the Buyer provides you Proof of Funds (POF) to close that is acceptable to you. If there is a Buyer loan involved, then have a contingency that the Buyer provides, that is acceptable to you, a Lender Pre-Qualification Letter stating that the loan can be obtained and that the Buyer’s credit is acceptable.

For Sellers, there can be an Estoppel Charge from the Management Company to close out your maintenance fee account.  The charge here in Aquarina, which The Voice believes is too much, can be at least $350.  Typically in Brevard County, the Seller pays for the Title Insurance Policy; however, with new construction, the Buyer typically pays.  If the policy, in many cases, is no more than five years old, and is issued by the same insurer, then there can be a discount to the policy cost.

One last caveat, some neighborhoods, have a Right of First Refusal, whereby the Association or an owner has the right to match your offer to purchase and make the purchase instead of you.  There is a time period for the Association or owner  to make this purchase decision or not  during the contract process.

Having a seasoned Realtor or attorney can assist you in the Buy and Sell process.  A real estate transaction is a significant event, and having professional guidance and help would be a strong recommendation.